Forum Archive Index - December 2000

[RIL <ril99_99@yahoo.co.uk>]

An interesting article on NZHerald online about the 
possible takeover of the NZSE by the ASX.

On the plus side it must be said that the merger would
be good for NZ investors and traders if they have
access to new issues in Australian equities. New
issues are a reliable earner especially for new
investors and there have been many in the last year in
Australia (with variable returns). 

However, Gaynor accurately speaks of the negatives for
NZ in such a transaction. It will undoubtedly be a
serious nail in the economic coffin of your country
and it concerns me that the country is governed by a
group of commercial un-sophisticates.

This proposed merger should be resisted at all costs
as should harmonisation of tax legislation. It may be
that one day NZ's only competitive advantage with
Australia will be to set its corporate tax rates below
those of Australia and harmonisation makes this
impossible of course.

A well run company in both cases has little choice but
to relocate to the bigger domestic market.

If indeed, as seems to be the case, NZ'ers are giving
up on the idea of an autonomous society and the
concept of a nation of their own, then I suppose none
of this matters.

Personally, I think it is a mistake.

There are clear reasons for NZs current failing and
all of them are correctable although of course they
won't be.

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